If you’re looking to find a good deal on a real estate investment, auction properties may be the way to go. Deals can range from a few hundred or thousand dollars to tens of thousands in savings. However, keep in mind that while auction homes can come with significant savings, they are also riskier than the conventional home purchase. In order to make a successful home auction purchase, the buyer must be well-informed about the process.
What is a real estate auction?
A real estate auction is simply a public sale of homes. Properties usually go into auction after being repossessed by either a bank or the government for any reason, such as the original homeowner defaulting on payments and their home being foreclosed. Previously, auctions were reserved solely for real estate investors and professionals, but thanks to sophisticated technology and simpler processes, real estate auctions are now available to all.
What are the different types of auctions?
There are two types of home auctions: online and live (in-person). Both types of auctions are free and open to the public. Live auctions are typically held at the county courthouse, and specific rules and regulations can vary by county. Online auctions have a set time period, which can range anywhere from a few days to a few weeks, to allow interested parties to place their bids. You can browse current and upcoming live and online auctions on Hubzu.com by creating a free account.
Are auction homes worth it?
In order to fully evaluate auction properties, we also have to weigh out the associated risks. Depending on the type of sale and the occupancy status of the property, you may not be able to inspect the property before bidding. While you can drive by the property to get a better understanding of its condition and do as much research on the home and neighborhood as possible online, not all issues will be apparent and you must be prepared to make any necessary repairs and renovations. Also, keep in mind that some auctions will be cash-only and financing options may not be available.
In summary, yes real estate auction properties can be good deals and can come with substantial savings when compared to traditional property sales. However, along with the cost efficiency comes greater risk. Be prepared to do your research and factor in some extra money toward repairs and renovations, if needed. Ultimately, even with the uncertain condition of the home and possibility of added expenses, you may still come out saving tens of thousands of dollars.
Get more house for less money by finding an auction property on Hubzu.com.